How to Set Up a Talent Agency

by Christian Fisher, Demand Media

Get the proper licensing, insurance and legal advice when setting up a talent agency.

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Finding jobs for actors, models, musicians and other artists is a talent agency's ongoing service. As an agent, your artists' success depends on your ability to build numerous strong relationships in the entertainment industry and your ability to work with the sometimes mercurial personalities of creative and talented people making their livings in the competitive world of show business.

Step 1

Hire an attorney. Let an entertainment attorney advise you on compliance with your state's laws and regulations regarding talent agencies. Have all contracts between you, the artists you sign and the clients who will hire your artists reviewed by your attorney. Legitimate studios, venues and other companies with jobs available for your artists will require signed contracts outlining the terms of each job.

Step 2

Establish your agency as a limited liability company (LLC) or S-corporation with your state. Contact the Secretary of State's Department of Corporations, in some states known as the Business Services Division or Commercial Division, to learn your state's requirements and fees regarding registering a business name and establishing your agency. Acquire an Employer Identification Number (EIN) from the Internal Revenue Service.

Get licensed as an employment agency with your state, if applicable. Talent agencies are considered a form of employment agency in several states. Agents working for your agency might also be required by law to have proper licensing, depending on your state. Contact your state's Department of Labor to find out the license requirements. State regulations can dictate how fees are split between employers, agents and artists; refund policies; limits on agent commissions and other conditions. Check whether or not you'll need to file a copy of your contracts with your state's labor commissioner.

Step 4

Purchase a surety bond if one is required by your state. Some states require a talent agency be bonded for minimums from $500 to $100,000. The bond protects your artists and assures the state that an artist you represent has recourse in the event your agency cannot pay the artist for work that was performed. The artist files a claim on the bond with your state's Department of Labor.

Step 5

Open a trust account for artists' funds. Set up the account to collect royalty and fee payments for artists' work. It's the main account from which payments to artists are disbursed. Make the account separate from the talent agency's bank account in accordance with state law.

About the Author

A writer since 1995, Christian Fisher is an author specializing in personal empowerment and professional success. From 2000 to 2005, he wrote true stories of human triumph for "Woman's World" magazine. Since 2004, he has also helped launch businesses including a music licensing company and a music school.

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